TechFlow, April 6 — According to Blockworks, Neon Machine, the developer of the crypto-based shooter game "Shrapnel," is facing severe financial difficulties. The company has burned through nearly $86.9 million in operating funds. Despite generating $21.7 million in revenue in 2024, it incurred a net loss of $11.4 million due to $33 million in operating expenses.
The company is currently burning $2–3.5 million per month, has exhausted its cash reserves, owes millions of dollars to external vendors, and failed to secure a planned funding round in early 2025. Neon Machine has conducted at least three rounds of layoffs, reducing its workforce from nearly 100 employees to just over ten, and closed its Seattle headquarters at the end of March.
Despite the dire financial situation, Neon Machine continues to claim it is “stronger than ever” and plans to launch Shrapnel globally by the end of 2025, though insiders have expressed skepticism.
Notably, Lingjing·People's Game Lab has reached a preliminary cooperation agreement with the core team of Shrapnel regarding the minting and distribution of the game’s digital assets in the Chinese market.
